How does title insurance differ from other types of insurance, such as car insurance?

Title insurance protects against the past, whereas car insurance and other property/casualty (P&C) insurance lines protect against the future. A car insurance company has no control over whether the insured actually gets into an accident; they can only screen the probability upfront, not the actual event. Title insurance, in contrast, is researches all past actual events and resolves any issues or liens; the insurance guarantees the accuracy of that research.

Therefore, title is traditionally more akin to errors-and-omissions (E&O) insurance (work done by the company is certified against its own demonstrable error), rather than P&C insurance (protection against events that can’t be precisely predicted).